Do Democrats Have a Plan for the Next Recession?

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    • #118747
      eridani
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      • Total Posts: 5,563

      https://newrepublic.com/article/154793/democrats-plan-next-recession

      They would be wise to start by examining the Obama administration’s reaction to the last recession. Although President Barack Obama is credited with staving off the worst effects of what is now known as the Great Recession—and perhaps averting a second coming of the Great Depression—his administration’s handling of the downturn was also remarkably tepid and unambitious. “While many voters hoped Obama’s policies might represent a dramatic change along the lines of the New Deal, instead Obama acquiesced to emergency considerations and ideological blandishments aimed at tempering expectations and a return to ‘normalcy,’” Eric Rauchway wrote in the Boston Review.

      Obama turned to political and economic veterans, handing the task of fixing the economy to a cabal of financial titans, many of whom played a central role in destroying it. Those insiders promptly set about propping up a deeply inequitable economic system rather than pressing for the “change” Obama had made central to his campaign. Main Street got by while Wall Street got rich … or richer. Banks were bailed out but homeowners were not. A decade later, tens (if not hundreds) of millions of Americans are still feeling the effects of the recession, while financial firms have been raking in record profits. “We can either have a rational resolution to the foreclosure crisis, or we can preserve the capital structure of the banks. We can’t do both,” Damon Silvers, vice chairman of the independent Congressional Oversight Panel told the Treasury in 2010. The administration chose the banks. Similarly, the decision not to prosecute anyone involved in wrecking the economy was an abdication of justice, one that has led to a continuation of predatory practices that will undoubtedly exacerbate the coming economic downturn.

      There were real consequences for those decisions. The economic recovery was slower than it might have been, had more serious action been taken. Although a number of factors went into the Democrats’ 2010 midterm shellacking, the slow pace of the recovery, combined with the Obama administration’s decision to reward the financial sector, played a significant role. As a result, the Democratic supermajority—something the party might not see again for a generation or more—was squandered.

      Democrats have a difficult task in addressing the possibility of a recession. For one, while a downturn would likely improve their (already fairly rosy) electoral prospects, they cannot be seen as eager for economic pain. At the same time, there has been a real reluctance to criticize the Obama administration’s legacy, given his extraordinary popularity among voters. Similarly, the bromide that Obama “saved” the economy would undoubtedly be hurled at any Democrat who pointed out that administration’s many blunders.

      Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction

    • #118816
      rampart
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      • Total Posts: 534
      1. no bailouts or bail ins
      2.  amnesty on foreclosures
      3.  prosecute any fraud to full extent
      4.  employment programs (wpa/ccc style)

      but, since they are democrats I don’t expect much.

      • #118890
        davidpdx
        Participant
        • Total Posts: 286

        @rampart we do need a real bailout for those with student loan debt. There is over $1.6 trillion. Forgiving all of that student debt frees up people to spend money, buy a house, get married, have kids, etc.

        American living abroad in South Korea and a proud progressive.

        • #119189
          rampart
          Participant
          • Total Posts: 534

          I do think some kind of student loan forgiveness is necessary. I was referring to wall st bailouts.

          long term i think some sort of education in return for years served in vital jobs (medical, military currently exist. teachers, agriculture,  public defenders, a thousand other educated professionals are needed who are not prevented from serving by the crushing student debt.

           

    • #118881
      djean111
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      • Total Posts: 3,921

      The Democrats/DNC, Inc.  plan for the next recession?  CAMPAIGN FODDER, BABY!!!!!!!   Served with a side order of making sure their owners/benefactors  do not suffer any ill effects, but actually prosper.

    • #118891
      davidpdx
      Participant
      • Total Posts: 286
      @djean111 we need to be perp walking the CEOs of banks like Jamie Diamond in front of cameras on their way to court.

      American living abroad in South Korea and a proud progressive.

    • #118971
      game meat
      Participant
      • Total Posts: 1,219

      Let’s face it: the Democrats are crossing their fingers and crossing their and toes, hoping for an economic downturn by 2020.

      They’ve been following the various economic indicators like a pack of wolves trailing a herd of elk, just waiting for the right moment to strike.

      The inverted yield curve surely produced ear to ear grins, and led to many high fives among wealthy dem insiders. Now that they’ve got something, it’s time to start the fear mongering. The economy is, in many ways, a self-fulfilling prophecy. The more they go on about a coming recession, the more likely it is to materialize. And they know it. What do they care? They’ll just bail themselves out if they win the presidency, and  pass the burden down to average people. The usual story…

       

       

    • #118976
      Ohio Barbarian
      Moderator
      • Total Posts: 13,776

      There is one Democrat with policies that will address the next recession by making the top 10% bail out the rest of us, and establishing thing like housing as human rights–Bernie Sanders. He is expecting the inevitable recession and his policies are the best for the bottom 90% of us, period.

      It is better to vote for what you want and not get it than to vote for what you don't want and get it.--Eugene Debs

      If Democrats don’t stand for the people, why should people stand for them?--Jim Hightower

    • #119029
      chknltl
      Participant
      • Total Posts: 1,020

      Although I know next to nothing on such matters, won’t the Republicans spend-spend-spend wherever they can, (with Pelosi’s blessings), hold off that recession until the Dems take the White House then scream bloody murder about the deficit AND the recession?

      It seems to me that the Dems will find themselves left at the scene of the crime-a crime they were only marginally complicit in via the House approvals of obscene increases of military spending.

      The citizenry would hear from our wonderful media about those tax n spend Dems who screwed over the economy by doing nothing about the deficit while everyne’s raising taxes.

      It would cost the Dems dearly in future elections cycles after this next one.

      Just throwing it out there….

       

      • #119195
        Ohio Barbarian
        Moderator
        • Total Posts: 13,776

        @chknitl “They” only have so much control over the global markets. Globalization is real, and everything’s connected in the financial markets. Germany, and hence the EU, going into recession will bring one here. Same with Brexit, and that’s scheduled for Halloween. China’s growth is dramatically slowing.

        In many countries, the majority of consumers simply don’t have the money to spend on all the goods and services being pumped out because they don’t make enough money, and the ruling oligarchy doesn’t want to give anything back. Recession is coming; I don’t know when, but it’s coming, no matter what they do.

        It is better to vote for what you want and not get it than to vote for what you don't want and get it.--Eugene Debs

        If Democrats don’t stand for the people, why should people stand for them?--Jim Hightower

      • #119230
        Cold Mountain Trail
        Participant
        • Total Posts: 8,492

        @chknltl

        “won’t the Republicans spend-spend-spend wherever they can, (with Pelosi’s blessings),”

        they already are (check the rising deficit) but its mainly military which gives more cash to the uppers & doesn’t do much for the lowers.

        same with the T-Dump cutting checks in farm country for the farmers he’s been busy screwing…& most of the other checks he’s cutting to shore up his base…while trying to cut back on supports for the lowers….

         

        “won’t they hold off that recession until the Dems take the White House then scream bloody murder about the deficit AND the recession?”

        that’s my fear too…

         

      • #121437
        Hobbit709
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        • Total Posts: 1,700

        I wouldn’t call the party leadership “marginally complicit”, I would call them totally complicit.

        I don't waste my time teaching pigs to sing.

    • #119293
      chknltl
      Participant
      • Total Posts: 1,020

      @ohiobarbarian

      Thanks for the clarification. I know that I truly lack a decent grasp of economics so I am stuck filtering things through what little I think I know.

      I live in a very rural part of Pierce County Washington. Things have hardly changed around here over the past decade.

      Just North of me in Tacoma, I took notice just yesterday that one can hardly go a block on any major street without seeing a homeless person pushing a shopping cart.

      It wasn’t that way in Tacoma a decade ago, nor that way in Seattle back in the Grunge Era two-three decades ago.

      My VA pension sorta covers my personal needs and they also cover all my medical/dental needs. I guess I got the gold ring there.

      When I see all the homelessness getting worse in my local cities I know that something must be done….I suspect real jobs that pay a living wage might be the start.

      As others have pointed out, student debt relief would be another tremendous boon freeing up students and grads to start spending in the local economy.

      The thing stopping that sort of progress for our economy as I see it is greed. The corporatists don’t want to turn loose of that money.

      I think they might allow Trump to take the fall in the next election, blame the Dems for the recession regardless of how global or local and also blame our deficit on the Dems just like the have always done.

      This will allow the corporatists to hold on to their money by hindering and eventually stopping any economic aid to the citizenry while furthemore making the Dems look like the parents of all of our economic woes.

      When it comes to the Dems plan for the Worldwide recession, outside of Bernie, I do not think that thsy even care.

      • #119298
        Cold Mountain Trail
        Participant
        • Total Posts: 8,492

        “It wasn’t that way in Tacoma a decade ago, nor that way in Seattle back in the Grunge Era two-three decades ago.”

        It’s even in small towns & suburbs now & I suspect in rural or semi-rural areas too.  I see it everywhere.  But its been growing since the Reagan era, always getting bigger, never getting smaller.

        If there is a recession & only the 10% have any means, I am concerned about the possible consequences.

         

         

    • #119801
      jerry611
      Participant
      • Total Posts: 868

      First off, people are jumping the gun. An inverted bond yield curve is not a guarantee of a recession. Even when it does predict a recession, it’s typically 2 years off. The inverted yield for the 2008 collapse happened in 2006. So if you go by the bond yield predictor, the recession won’t happen until 2021.

      Second, if the only way for Democrats to beat Trump is for there to be a recession, the party is in very serious trouble. It’s also pretty bad optics to see rich Democrats (who won’t suffer) cheering for a recession.

      Third, the lower and middle classes are going to get hosed in another recession no matter happens politically. Congress is only in the business of protecting millionaires and banks. That is their primary concern. In their view, protecting people who have little or no money is not the priority.

    • #120386
      chknltl
      Participant
      • Total Posts: 1,020

      I need to add another bit about all this business of an upcoming recession. I have a modestly wealthy brother worth between 15-20 million. He owns many rentals in our area as a source of stable income plus he has a diversified stock portfolio.

      Prior to the last recession, I was an avid Thom Hartmann listener. He warned us repeatedly of the of an upcomming recession. I said nothing about this to my brother, he lost 4 million when that recession hit.

      A few years later I started hearing, (like now), stories of another recession just around the cornor. This time I mentioned it to my brother. He got madder than hell at me. “Recessions come and go!”, he said, “I lost 4 million in the last one and gained it back a year later, I don’t know who you’ve been listening to but they don’t know sh*!!!”

      Well here we are again. As I stated above, I truly know nothing about these things. I suspect if I still listened to Thom Hartmann, (I do not), he would be screaming “Recession-recession-recession!!!” again.  Richard Wolff is talking recession and folks I listen to here-folks I place much more credibility in than Thom Hartmann are talking about an upcoming recession.

      FWIW I am just throwing it out there that I am confused by all of this. I plan on just watching and learning from my ringside seat at JPR. What happens to my brother….well he has been on his phone more than normal so we shall see what we shall see.

    • #120852
      3fingerbrown
      Participant
      • Total Posts: 2,560

      The plan is, We’re not Trump!

      All governments lie to their citizen's, but only Americans believe theirs.

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